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EU second round of joint purchase of gas remained bit short of demand

In its second tender for the joint purchasing of gas under the EU Energy Platform, the European Commission was bit short of its aggregate demand. Total 25 international suppliers had responded to the tender with bids to supply a total volume of 15.19 billion cubic meters (bcm) of gas, to respond to the aggregated European demand of 15.92 bcm.

The AggregateEU mechanism has matched the most attractive offers with customer demands, with a total matched volume of 12 bcm. This result surpasses the level of matched volume in the first round, by more than 1 bcm.

All participants have been informed about the matching results and will now be able to start contractual negotiations, in full confidentiality and outside of the AggregateEU mechanism. 

In its first round of joint purchasing of gas European Union had managed to attract bids from total of 25 LNG and natural gas suppliers with bids equivalent to more than 13.4 bcm of gas, surpassing the 11.6 bcm of joint demand of EU companies.

EU Vice-President Maroš Šefcovic said The positive results of this second call shows that there is a need and a clear added-value in joining forces, pooling our demand and working together to guarantee stable and affordable gas supplies to the EU market. It is now important to ensure that a model that works can be a model that stays. I believe that we should now work towards not only continuing our joint purchasing of gas, but also expanding this model to other commodities, including renewable gases, hydrogen and strategic raw materials.” 

More aggregation and tendering rounds will follow by the end of 2023, with the next one expected to be launched after the summer.